RT.com
16 Mar 2023, 23:44 GMT+10
Output will slow as Moscow reroutes EU-bound flows to other markets, the official said
Russia projects a decline in its oil and gas output this year compared to 2022, partly due to the announced production cut, Energy Minister Nikolai Shulginov said on Wednesday.
In February, Russia announced it would voluntarily reduce oil production in March by 500,000 barrels per day in response to Western sanctions as it halted sales to buyers complying with an imposed price cap. Moscow said the move was designed to restore market relations shattered by the scheme, which it branded "illegal."
Addressing the Russian Parliament, Shulginov said that for 2023 he expected "oil production levels to be slightly lower, because of the voluntary reduction in output." The minister added that "gas production volumes will continue to decline, both due to the abandonment of the European market and the timing of the rerouting of energy flows to the East."
Russia's decision to reduce its oil production this month will help balance the global oil market, which is in a surplus now, Alexander Dyukov, the chief executive of Russian oil company Gazprom Neft, a subsidiary of Gazprom, said last month.
Oil production in Russia rose to 535.1 million tons last year from 524.5 million tons in 2021. Gas production dropped to 674 billion cubic meters (bcm) in 2022 compared to 763 bcm in the previous year.
In January Russia's oil exports surged to an all-time high previously reached in February 2020 despite the Western embargo on Moscow's seaborne crude as customers were rushing to boost their stocks of the commodity, a report by the International Energy Agency showed.
Meanwhile, other major oil producers like Saudi Arabia and Algeria have warned that Western sanctions such as the price cap on Russian oil will spark uncertainty and disrupt global trade flows.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Breaking Property News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Breaking Property News.
More InformationLONDON, U.K.: This week, BP appointed Simon Henry, former Shell finance chief, to its board as a non-executive director effective September...
OTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
NEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NAIROBI, July 4 (Xinhua) -- Chinese contractors are helping advance Kenya's construction sector by transferring technologies, the industry...
Trumps giant win does not validate his unconstitutional birthright citizenship order
Jon Coupal- Both parties continue to play soccer with the proverbial can
Californias politics drifts rightward while New Yorks leans left
California is fighting a losing battle against Title IX and human biology